Commodity prices are on the defensive to start the trading week as global slowdown fears creep back into focus across financial markets.
Sentiment-sensitive Crude Oil, Nat Gas and Copper prices are following Asian and European shares lower. Gold and Silver are trading lower as the risk-averse sentiment incentivises safe-haven demand for the US Dollar, putting de-facto downward pressure on the commodities in general.
S&P 500 stock index futures are showing indecision and indicating more of the choppy consolidation range trading while the economic data is digested, pointing to more of the same as Wall Street comes online.
Copper price action is showing sideways consolidation movement and 3 consecutive reversal patterns. The current levels are retesting support at 20 Day SMA (simple moving average).
If the previous lows support is lost at 370 which is also a 50 Day SMA the next support levels could be located at 360 followed by 348 which is 50% Fib Retracement from last year lows to the recent highs. Alternatively if the current price levels hold and we see more upside the next resistance is located at 397 which is the recent February 2012 high.